GST rate reduction is welcome step, now Govt. should make its filing easy and minimise the process mechanism.
Mr Mahendra Chhalani Proprietor, Plyworth, Ahmedabad is in this trade since 1992 in Ahmedabad, Gujarat and has been continuing mostly in plywood trading. They had started their trading activity in Tinshukiya, Assam as he originally belongs to there with their ancestral business for over 50 years before. Later he came to Ahmedabad and is trading in wood panel products since last 25 years. Currently by procuring manufactured products from Haryana and Assam he is active in trading in this region. They are flourishing very well with many associates and leaders in this industry. The Ply Reporter talked to him on the situation after GST in their business process. Excerpts.
Q. What changes you observe in business after implementation of GST?
A.The business is observing slow movement right after GST implementation. Before rate cut announced last month Customers were unwilling to pay it as they were thinking 28 % GST was on higher side. They were taking another option to their choice or postpone their purchase decisions. Currently they were think their choice is out of the budget. After GST rate reduction there is happiness everywhere. Customers as well as traders are expecting good in coming days.
Q. Apart from customers’ choice what operational changes you observe?
A. There is a vast operational change as we have a burden of increased paper works, and for the purpose we need an extra manpower that can do it well. When a retailer returns the goods after purchases or job done, the reverse paper management is a tough task for the traders like us. Private GST filing centres charge more which is an extra expense for small traders. Besides, there are lot of confusion as if we buy from a composition scheme sellers, how can we get credit input every month. The earlier system of VAT had required only one return in a month, now in GST we need to file three every month.
Q. Now it is four months of GST, have you got an ease in process adoption now?
A. As we get acquaint of a process adoption we receive another amendment, and according to the amendment we need to make changes. Government is trying to make it easy; still there are a lot of hurdles. People are also slow to understand the new system and acceptability is not coming quickly. We are hopeful that Government will consider this sooner than later.
Q. How long will it take to get smooth line, do you have any idea?
A. I wish people get it acquainted as soon as possible and government has made it a little easy by putting plywood and other such products in lower slab to 18%. Secondly minimising the paper work will bring the ease in wood panel business because 35 returns in a year are unnecessary. Small traders who are basically carpenters turn traders are facing many problems as they don’t have knowledge as well as infrastructure for return filing or maintain electronic record on computer. They get help of professionals and for which they have to pay charges. When we say adopt the composition scheme they say in this way we will have to bear more cost as there is no input credit.
Q. You deal in Yamunanagar based John Deer Plywood, what is your opinion on their products quality?
A. We are associated with Mr. Padam Jain since last eight years and regularly together doing well in this region. We procure both shuttering plywood and plywood from him. We are getting full support from Mr Jain and his partners in every aspect. They are very good and co-operative and ready to support always. Their services are excellent and they are always open for ideas. The materials used in his products, I grade these best among all even from the big brands. Quality-wise, John Deer is best on the price they offer. Being a dealer I trust them a lot and our business is growing with them. They are very much supportive to dealers as they give freedom and do not interfere. Besides, even in the direct lead they involve us in between.
Q. What should one adopt either doing business with big brands or mid segment?
A. Being with a mid segment brand the dealers feel at comfort with more profitability while the big brands spend more on maintaining brand image and bringing it to further level by advertisement and promotion that is why the profitability is little less. This is the only difference; otherwise doing businesses with both of them are good.